1 place in the rating! Free trading training!
HOW LONG DOES IT TAKE TO LEARN FOREX TRADING?
This is one of the frequently asked questions by those who plan to trade forex. The forex market seems appealing to various potential investors as it is the most liquid and largest financial market. Trading forex acts like a double-edged sword which can either offer huge sums or render you broke. Obviously, no one prefers investing in something too money-wasting and time-consuming unless they know that the investment can bring them considerable profits afterward.
In this article, we will help answer the common question of how long it takes you to understand the basics about the forex market, but not to become a profitable trader or a master in forex trading. This is because the mastery of forex requires you too many years of continuous learning and practicing.
How Long Does It Take to Learn Forex Trading?
Generally, most traders spend from 3 to 6 months on fully understanding the fundamentals of forex trading. Besides setting trading goals, choosing proper trading strategies or forex brokers, novice investors should learn the forex terminology first. Getting to know about such jargon as pips, spreads, long or long/short positions and grasping how they function in trades, you will avoid being bewildered when participating in paper or real trading.
In addition, equipping yourself with knowledge about indicators, charts and types of orders is a necessity to devise detailed trading plans more easily.
For example, if you decide to be a day trader which means entering and exiting trades within a single day, you should consider putting stop-loss and take-profit orders to prevent your account balance from dropping to zero and using indicators to place a proper stop or limit level. This is because too tight or too wide distance can pose you into the risk of losing more money than expected. However, not all trades may use the same tactics, so the lack of knowledge will render you too passive and inflexible in forex trading.
Depending on available time, financial conditions, and learning skills, it will take you a few weeks to months to search for forex materials and memorize essential theories.
Practice makes perfect
1 place in the rating! Free trading training!
Any novice forex traders should practice what they theoretically learn on demo accounts. To do that, they can enroll for an account with any prestigious brokers. To illustrate, after registering in FinmaxFX and downloading the MetaTrader 5 trading platform, traders can open a practice (demo) account for free and without any monetary risks.
Providing private information, forex trading beginners can decide their expected virtual deposit and leverage rate.
Normally, less-experienced forex traders should spend at least 3 months or test their trading strategy on at least 200 trades before joining the real trading. The more they practice, the better they are accustomed to forex trading and the higher the percentage of producing profits in future trades.
When learning about forex trading, you may hear many predecessors share how long they can understand the market and start earning profits. Fedro Miller – a Senior Manager at Gronary Global Ltd. – only spent 2 months jumping into the market, whereas a trader confided with the Reddit community that it took him 3 years to totally understand how trading forex works.
Therefore, in reality, the time of learning forex trading depends on various factors. Moreover, the learning is ongoing as the real market out there is always changing, which requires forex traders to update new knowledge every day.
Can I Learn Forex by Myself?
Definitely yes, you can learn forex by yourself, as long as you have enough patience, persistence and willingness to spend a lot of time googling everything related to forex, establishing a goal, drawing up proper trading strategies, testing such plans, failing and starting again.
Indeed, owing to its possibility of bringing traders huge profits, trading forex has recently become popular, which directly leads to a higher demand for learning forex. Having said that, paving a well-trodden path to forex education is a daunting task. Usually, they may confront challenges of being familiar with terminologies, practicing on demo accounts, making mistakes, and redesigning another strategy. Further, any self-taught forex traders have to continually be well-informed about current market trends or news, and always be disciplined in money and risk management.
Before choosing this education method, you should ask yourself some following questions first:
- How passionate are you about forex trading?
If you have insufficient interest in forex trading, you will not overcome difficult times and then quickly want to give up.
- How much time are you willing to spend on learning forex?
You are advised to spend as much time as possible on learning forex trading. Most people always want to hurry to make money, yet no trader can achieve consistent profits if they devote too little time to the business. The more time it takes to study charts, indicators and practice on demo accounts, the more quickly you absorb all necessary contents of forex and get into the real market.
- How flexible are you?
As mentioned, the same trading strategies are not always applied to all forex trades, let alone constant changes in the forex market. Therefore, when learning about forex, you should flexibly search for the latest sources of information regarding how the market flows and properly apply knowledge into trading. This will help you fast obtain skills to work in such an uncertain financial market.
The Best Way to Learn Forex Trading
There are two options for forex trading beginners to learn about this financial market. However, which one is the best depends much on their financial conditions, devoted time, commitment to forex education and many more.
As mentioned, self-studying forex trading is rather tricky, but not impossible. Choosing this education style means that you have to go on this career path by yourself from the beginning to the end. The Internet has a big collection of forex-related information in the forms of blog posts, ebooks or videos. Even you can participate in large forex communities on Twitter or Reddit and follow the best forex traders such as Rudy Havenstein or Steve Burns.
Inevitably, self-education has potential drawbacks:
- Knowledge on the Internet is unstructured. Although you can access free sources of information, no books or blogs explain everything from A to Z. This makes you waste more time searching and accumulating content. In addition, facing a vast amount of information, you hardly know where to start or which is outdated and should be filtered out. Consequently, you may not apply such knowledge to practice, which consumes too much time and even discourages you to continue your study;
- Self-directed investors may be confused about what others wrote on blogs. It means the sharing of some authors is often their personal experience, which does not ensure that such information is accurate and suitable for new traders.
For example, you look through a post of a trader who earned over $1,500 with the initial investment of $400 after 2 months of learning about forex. He shared that he used a high leverage ratio and followed stop-loss rules to make such big money. This sharing appeals to you and you decide to apply the same strategy. Unfortunately, you fail. The trading setup of the man may not be wrong, yet be unsuitable for you.
For effective self-education, you should find out about common terms and definitions that are available on websites of brokers.
In addition, you should also learn about risk and money management tools, charts and indicators, technical and fundamental analysis, trading platforms (mostly MetaTrader 4 or 5) and market dynamics. Such information will be provided in blog posts or books. Some typical books for forex trading beginners are How to Trade Forex with Zero Fear (Christo Ricardo), Beginners Forex Traders Guidebook (J. Gelp) or Simple & Easy Forex Trading Strategies (Josef Fluse).
However, the best way to acquire such knowledge is concurrently practicing such theories on demo accounts to see how the market works.
Having said that, one possible downside of paper trading is that it does not give investors the same experience as real trading. This psychological factor can be explained as follows: when opening and closing a position on demo accounts, traders often feel unstressed as they trade with a virtual deposit and face no financial risks. This will help them make wiser decisions.
Trading on real accounts is different. It puts traders under greater pressure when they have to use their own money to trade forex. Fearing that they may get into undesired debts, they can be prone to wrong decisions and then big failures. So, instead of demo accounts, some who prefer risks may choose micro real accounts provided by several brokers to start trading small, which makes those investors more responsible for their investments.
More importantly, when you self-learn forex, you need to be patient, persistent and always committed to education.
Forex Training Courses
Similar to all courses you have enrolled in since primary school, forex training courses provide learners with a clear study route to understand the forex market. Today, many brokers want their clients to treat forex trading seriously, so they offer simple free lessons in the forms of webinars, videos, and ebooks to give basics of forex trading.
Further, new traders can register themselves for tailored courses for fees created by industry experts. However, they may aim at addressing a particular issue of forex trading, but not giving you a whole tutorial to learn from A to Z. Therefore, in reality, besides taking those training courses to learn about fundamentals or solutions to some aspects of forex, you still have to spend time on learning from other sources such as books or articles.
After preparing forex-related fundamentals, you can reach intermediate and then advanced levels at which you will improve your forex trading skills by reading market reviews, finding new strategies and conducting technical analyses.
1 place in the rating! Free trading training!